TITLE : MAKING OF ECONOMICS, THE. 3RD ED.*

Preface xi
 
CHAPTER 1
VAWES AND ECONOMIC SYSTEMS 1
 
Organizing Economic Activity 2
Caricature Systems 4
Feudalism and the Evolution of Economic Society 5
Values, Authority, and Adam Smith 14
The World View 18
 
CHAPTER 2
THE NATURE OF SCIENCE AND
THE ECONOMICS PARADIGM 20
 
Science and the,Scientific Method 21
Early Celestial Mechanics and the Ptolemaic System 23
The Scientific Revolution and Copernicus 26
Newtonian Mechanics and Natural Laws 28
The Economics Framework 29
Conclusions 33
 
CHAPTER 3
ADAM SMITH AND THE MARKET ECONOMY 34
 
Smith's Life of Harmony 35
The Slow Evolution of the Market Economy 36
Mercantilism, Big Govemment, and the Physiocrats 41
Adam Smith and the Triumph of Westem Economics 45
Smith, Reality, and the Visions to Come 51
Conclusions 53
 
CHAPTER 4
THE INDUSTRIAL REVOLUTION
AND THE OTHER CLASSICALS 55
 
The Industrial Revolution 57
The Social Scene: Liberty, Fratemity, and Inequality 62
The Philosophical Radicals in General and Jeremy Bentham
in Particular 67
The Dismalness of Thomas Malthus 68
David Ricardo, The Stockbroker-Economist 72
Poverty and Other Forms of Cold Water 78
John Stuart Mill: The Most Humane Classical 82
 
CHAPTER 5
THE "AMERICAN DREAM" 85
 
Horatio Alger and the Benign Universe 85
The Analytics of Equilibrium and Optimization 88
The Social Darwinists 91
 
CHAPTER 6
ALFRED MARSHALL AND THE U.S.A. PURITANS 97
 
Economic Man and Perfect Competition: Some Paradigm
Refinements 98
The Marginalists' Bridge 101
Marginalism and the Theory of Distribution 103
The Neoclassical Niceties of Victorian England 104
The Robber Barons: Competition After Throats
Have Been Cut 110
Crises and Scientific Revolutions 116
Mrs. Robinson, Mr. Chamberlin, and Not-So-Perfect
Competition 117
Conclusions 119
 
CHAPTER 7
J. M. KEYNES: THE END OF FRUGALIB 120
 
Neoclassical Macroeconomics, Gluts, and Unemployment 121
The Great Depression 123
J. M. Keynes: The Neoclassical Heretic 125
The Keynesian Revolution: The Momentary Overthrow
of a Paradigm 127
The Keynesian Revolution: Why? 138
Conclusions 140
 
CHAPTER 8
THE BASTARD KEYNESIANS AND THE MONETARISTS 143
 
The Fiscal Keynesians 144
The Neoclassical Keynesians 148
Keynes's Keynesians 151
The Monetarists 155
Conclusions 163
 
CHAPTER 9
THE ERA OF POSlTIVE ECONOMIC SCIENCE 164
 
The Character of Positive Economics 165
Positive Economics and Values 166
Two Positive Economists 169
Twentieth-Century Physics: A Return to Copernican
Uncertainty 174
The Economists' Critique of Positive Economics 177
Economic Idealizations: Perfect Competition and
Economic Man 179
Where Physics and Economics Part 181
 
CHAPTER 10
PARADIGM LOST: KARL MARX 185
 
Notes on Marx 186
The Influence of Hegel 187
Marxian Economic Alienation 189
The Malaian Economics Paradigm 191
 
CHAPTER 11
THE ICONOCLASTS: VEBLEN AND GALBRAITH 198
 
Veblen and the Evolutionists 199
The Evolutionist Economic Theory 201
Other Views of the "Economic Man" 203
The Political Economy of John Kenneth Galbraith 206
 
CHAPTER 12
NEW RADICAL ECONOMICS: THE LEFT 213
The Rise of the New Left Radicalism 214
The Radical Critique of Neoclassicism 216
The Criticism of the Capitalist System 220
Doomsday Capitalism 223
Confusion Between Caricature Capitalism and the Status Quo 224
 
CHAPTER 13
ECONOMIC CRISES OF THE 1970s	226
 
The Corporate Concentration Crisis 227
The Poverty Crisis 234
Inflation and the Phillips Curve 238
The Ecological Crisis 246
Conclusions 247
 
CHAPTER 14
NEW RADICAL ECONOMICS: THE RIGHT 249
 
The Neo-Austrians 250
Neo-Austrianism and Libertarian Social Ideas 256
Reaganomics and the Supply-Siders 259
Keynes Redux 265
The Economic Crises of the 1980s	268
Conclusions 271
 
CHAPTER 15
THE POST-KEYNESIANS 272
 
Post-Keynesian Theories of Production and the Income Distribution 274
The Household Budget and Macroeconomics 289
The Price Markup and Stagflation 293
Necessary Stimulation 296
The Income Shares of Workers and Managers 298
Stagflation 300
The Short Period: The Business Cycle 302
Economic Reality and Theory: A Summary 310
 
CHAPTER 16
STAGNATION AND THE LONG WAVE 313
 
The Product Cycle and the Evolution of Industry 315
Budget Shares and the Size of the Firm 320
Innovations and Stagnation 321
Stagnation and Post-Keynesian Stagflation 323
The Global Economy 328
A New Global Perspective for Development 329
A New View of Economic Growth 335
 
CHAPTER 17
POST-KEYNESIAN ECONOMIC POLICIES 338
 
A Guide to Post-Keynesian Money 339
The Casino Economy 342
Incomes Policy 348
Tax Reform and Incomes Policy 350
The New Meaning of Fiscal Policy 356
Global Economic Policies 358
 
CHAPTER 18
A SUMMING UP 365
 
Economics: Present and Past Imperfect 366
Keynes and the Post-Keynesians 368
Political Economy, Again 370
The Voice of the Masters 372
 
Notes 373
 
Suggested Readings 395
 
Index 403